Hi all, Finished uni last year and started working this year (23 yo). After learning that many of my older colleagues are still struggling financially with their only mortgage. I've realised I don't want to be a slave to my job forever especially when a family comes along. So I've been reading heaps on SS and here for a few weeks. Just finished reading "What Every Property Investor Needs To Know About Finance, Tax and the Law" by Michael Yardney. Great beginners book. Have signed up for a few free seminars too. What looks to be an excellent opportunity with an IP has come up recently (can get it for around 25-35% less than market value in Sunnybank), but researching more on my strategy for the future and weighing up the options before I make a decision. It's been eye opening absorbing all this knowledge, looking forward to learning more.
Hey @Creamy , Good stuff! If you don't mind me asking, why is the property 25%-35% less market value? If it is and you have done your research that sounds great.
If you can make an instant 150k on property purchase right now you'd be crazy to hesitate. Most people will never see opportunities like this. Strategy should be irrelevant here because you can buy then sell and still make plenty.
Have a relative leaving Australia end of the year for good and is selling a few of his IP's to fund the move. Since I'm quite close with him, he's offered to sell the property to me at the price he purchased it for + stamp duty. Only reason I'm hesitant is because it's a very run down old Queenslander. Not sure at the moment whether manufacturing growth would increase it's value by a larger amount. Also unsure if it would pass a B&P report. Maintenance is also quite expensive. Ideally, I'd like to keep it in it's current state for 10 years and knock it down and rebuild as PPOR.
whatever you do, make sure you give your 2c worth to the hype Brisbane thread. Some of us old fellas [ mostly under 30] have been carrying the flag and new blood is always a good thing.
Hey @Creamy , good on you for researching at your age, well done. But remember, you might not have experienced a downturn, so keep in mind that everything could look good looking through rose coloured glasses. Even if it is someone you trust telling you they will sell you a property "at cost", doesn't mean it's a good deal. Doesn't mean it's not either, but you really need to be able to step back and look at it objectively.
@JDP1 Will do! @Azazel thanks for the advice, I've tried to do some due diligence and I've calculated break even yields for the place at different rates. Will have a buffer in place too. I'm also gonna sleep on it and actively look for alternatives for a few weeks/months.
Depending on where about is the property. 1km radius of market square with a rental yield of greater then 4.2% is a good buy. Good capital growth around that radius. A relative purchased in that radius end of 2013 for high 400k. If the house is put on the market right now, it would easily be sold for around 600k
